.till 



F 257 
U7 
918 
opy 1 



HE PRODUCTION, DISTRIBUTION 
FOOD VALUE OF MILK 



A REPORT TO 
HERBERT G. HOOVER 

United States Food Administrator 



By 
THE MILK COMMITTEE 



CLYDE L. KING, Chairman 
F. A. PEARSON 
(JFFORD PINCHOT 



MRS. A. W. SMITH 
J. W. SULLIVAN 
G. F. WARREN 







,.•-- 



WASHINGTON 

GOVERNMENT PRINTING OFFICE 

1918 



' 



i. ,,M 



p. of D. 
JAN 21 1918 



«0 A 



,v 



v\\* 






{report of the committee on the produc- 
tion AND DISTRIBUTION OF MILK. 



The Committee appointed by the Food Administration to con- 
sider the production and distribution of milk for city markets (not 
including butter, cheese, or condensed milk) submits the following 
report. The report consists of three parts — production, distribution, 
and food value of milk. 

I. THE PRODUCTION OF MILK. 

WAYS OF DETERMINING WHETHER PRICES ARE SUCH AS TO MAINTAIN A NORMAL 

MILK SUPPLY. 

A few of the many facts that indicate whether prices are such as to 
maintain the milk supply are: The extent of the raising of heifer 
calves; the extent of the slaughter of dairy cows; prices paid the 
farmer for dairy products compared with the prices of other farm 
products; the comparative prices of milk, butter, cheese, and con- 
densed milk; the cost of producing milk; the comparative extent of 
the movement of labor from dairy farms to cities. 

HEIFERS RAISED AND COWS SLAUGHTERED. 

If the price of milk is too low, too few heifer calves are raised and 
cows may be slaughtered. The immediate effect may not be noticed 
on the milk supply because the reduction in production may be offset 
by the smaller amount of milk consumed by calves. A reduction 
in calves raised tends to increase the amount of milk available for 
two years. Dairying is not a one-year business. If we have too 
little wheat the area may be increased next year, but it takes several 
years to raise a dairy cow. Heifers usually freshen for the first time 
at 24 to 30 months of age, but do not reach their full production 
until about 5 to 6 years of age. The shortage or excess of milk does 
not come immediately following too low or too high prices, but usually 
comes two or four years later. 

If dairying is not paying, the farmer can dispose of his poorer cows 
and heifers by selling them for beef. He is slow to do this because it 
costs more to raise a dairy cow than she is worth for beef. The farmer 
has, however, a means of escape even if at a loss, and can substitute 
other enterprises in his farming operations. On the other hand, if 
prices of dairy products are too low, and if too few cows are raised 

3 



4 PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 

in the entire country, or if too many cows are slaughtered, there is no 
way to correct the error in less than about 3 or 4 years. 

Consideration of all the facts submitted, indicate that if one dairy 
heifer is saved for each four or five cows kept, the industry probably 
will be maintained, but one heifer for each six cows seems to be too 
few. 

Most of the reports considered indicate a reduction in the number 
of heifers now being raised. On April 21, 1917, the Food Supply 
Commission of New York took an agricultural census of the State. 
This census showed the following facts : 

Heifers under 1 year old (to be raised for dairy cows, April, 1916) 302, 433 

Heifers under 1 year old (to be raised for dairy cows, April, 1917) 224, 295 

Decrease (per cent) 26 

In August, 1917, reports from 2,500 farms in Connecticut indicate 
a decrease of 4.5 per cent in dairy cows. A State census in New 
York in April, 1917, indicated an increase of 3 per cent in dairy cows 
over 1916. Reports August 1 from 1,441 farmers in New York, 
keeping 28,167 cows, show that in the four months, April to August, 
1,628 cows were sold for slaughter because of failure to breed, poor 
production, or because of other troubles with the cow; and that 1,304 
cows were slaughtered because of high prices for feed, or labor, or 
because of low prices for milk. Much evidence has been submitted 
to the committee presenting more or less conflicting opinions. The 
slaughter of dairy cows was above normal during the late winter and 
early spring months of 1917. 

The reports indicate that the marginal producers are being elimi- 
nated somewhat more rapidly than usual. 

THE VEAL CALF. 

If it is assumed that 90 calves are born alive for each 100 dairy 
cows, there would be about 45 heifers and 45 bulls. Of the 45 
heifers about 20 to 25 are necessary to maintain the supply of cows, 
and about 5 bulls are probably raised for breeding purposes. In the 
intensive dairy districts normally all of the others are killed at birth 
or used for veal. 

Restrictions in the production or use of veal do not result in more 
beef, but in less veal. The dairy bull calf is not a potential beef 
steer. Farmers rarely veal a calf from a beef cow and rarely raise 
dairy calves for beef. The commercial veal calf usually is produced 
in a region where feed is too expensive for beef production. 

Whole milk is the only feed that will produce a satisfactory veal. 
The average milk consumption is given by Eckles as about 13 pounds 
of whole milk per day for the first month, and the calf gains an 
average of 1.3 pounds per day. The 13 pounds (6 quarts) of milk 
contain much more human food than the 1.3 pounds of calf. If the 
milk costs $3 a hundred the feed for each pound of gain would cost 



PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 5 

30 cents. A veal calf dresses off about one-half, so that the cost to 
produce each additional pound of dressed veal would be about 60 
cents. The sooner the surplus dairy calves not required to main- 
tain the dairy industry are killed for veal, the greater the Nation's 
food supply. 

PRICE OF MILK RELATED TO PRICE OF OTHER FARM PRODUCTS. 

The farmer is called on for more grain, more wool, and more beef 
cattle as well as for more milk. Sheep and beef cattle can use the 
same pastures and hay that are fed to cows. Much of the hay and 
pasture land are adapted to the production of grain. Prices of milk 
must, therefore, bear some relationship to prices of other farm 
products. 

PRICE OF MILK RELATED TO PRICES OP OTHER DAIRY PRODUCTS. 

Milk for the city trade sells for more than it is worth for making 
either cheese, butter, or condensed milk. 

The sanitary requirements for market milk make its production 
more costly than the production of milk for making butter or cheese. 
Furthermore, milk for the city trade must be produced relatively 
near cities, where hay and labor are more expensive, and a larger 
part of it must be produced in winter, at a time of year when feed is 
expensive. The milk for the manufactured products may be pro- 
duced on pasture, which is the cheapest feed, and stored for winter 
use. 

SIZE OF DAIRY HERDS. 

The average number of cows in New York State in April, 1917, was 
less than 7 per farm. In 8 counties in New York, in different parts 
of the State, the majority of the cows were kept in herds of less than 
21 cows. In the most intensive dairy section in Illinois investiga- 
tions in 1912 showed an average of 26 cows per farm. If all the 
milk-producing regions are included the average number of cows 
per herd is less. The maintenance of the milk supply is dependent 
on the success of these small herds. 

MILK PRODUCTION PER COW. 

The average production in New York State in 1909 has been 
estimated at 4,900 pounds per cow. The average production per 
cow is higher on farms selling market milk than for farms selling 
milk for butter and cheese production. On farms selling market 
milk estimates have been received from several States, and indicate 
5,000 to 5,500 pounds as the average production. 

PER CENT OF TOTAL FARM RECEIPTS DERIVED FROM MILK AND MILK PRODUCTS. 

In 1912 in the most intensive dairy regions in Illinois (Kane and 
McHenry Counties) 58 per cent of the income of dairy farms was 
derived from milk. The other receipts were from crops sold, hogs, 
and other live stock. 



6 PRODUCTION;, DISTRIBUTION, AND FOOD VALUE OP MILK. 

The average for 21 different dairy regions, including 2,015 farms 
in New York, shows 55 per cent of the receipts coming from the sale 
of milk and its products, 13 per cent from the sale of cattle, and 32 
per cent from the sale of crops, poultry, eggs, and the like. 

PER CENT OF CONCENTRATES FOR DAIRY COWS RAISED ON THE FARM. 

In 1912 on 174 farms in Delaware County, N. Y., 98.3 per cent of 
the concentrates fed to cows was purchased. Nor is the eastern 
dairyman depending directly on western grain, for 95 per cent of the 
concentrates fed to dairy cows was made up of by-products, such as 
cottonseed meal, gluten, wheat bran, molasses feeds, beet pulp, and 
the like. The total grain, including both home-grown and purchased 
grains in all forms, amounted to only 5 per cent of the concentrates 
fed. 

On 149 farms in Broome County, N. Y., in 1915, only 4 per cent 
of the concentrates fed to cows consisted of home-grown grain in 
any form. Of the entire amount of concentrates fed 90 per cent 
consisted of various by-products. 

Even in the corn belt the dairy farmer who sells market milk 
depends primarily on by-products for concentrates. Of the concen- 
trates fed to 858 cows in Illinois only 45 per cent consisted of grain 
in any form, either purchased or home-grown. With the present 
high prices of grain the proportion of by-products in the ration is 
probably higher. Dairy cows are largely fed on materials not suit- 
able for human food. 

COST OF PRODUCING MILK. 

The costs here are included for farms producing milk for various 
city markets in the North. The results are from investigations in 
six States for 490 farms, keeping 9,761 cows. Five of the States give 
the milk production in winter. On the average 49.3 per cent was 
produced in the six months beginning October 1. Five States give 
the butter-fat production. The average test was 3.7 per cent fat. 

The costs of milk production include labor of men and horses; 
concentrates, including grain; roughage; bedding; interest and taxes 
on pasture land and maintenance of pasture and fences; interest, 
taxes, insurance and cost of upkeep of barn; dairy equipment; taxes, 
interest, insurance and depreciation on cows; cost of keeping a bull; 
feed grinding; milk hauling; ice, veterinary fees and medicine; salt; 
kerosene for lanterns; cow testing; whitewash; and many other 
expenses. 

To get the cost of producing milk, credits must be allowed for the 
value of calves and calf hides, feed bags sold, and for manure. 

The costs of production vary widely in different regions because 
of the differences in the cost of feed and labor, but for herds producing 
market milk distributed by months according to the city demands 



PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 



the quantities of feed and hours of labor per 100 pounds of milk, 
containing the same amount of butter-fat, are fairly uniform in most 
of the milk districts of the North. 

Investigations in Minnesota, Michigan, Massachusetts, Connecticut, 
New York, and New Jersey, on 490 farms where 9,761 cows were 
kept, showed the yearly average quantities of food and labor to pro- 
duce 100 pounds of milk for the different regions to be as below: 

2.88 hours of labor. 
33.5 pounds of grain (concentrates). 
45.3 pounds of hay. 
11.5 pounds of other dry forage. 
93.2 pounds of silage. 

9.4 pounds of other succulent feed. 

The above items made 80.8 per cent of the total yearly average net 
cost of milk after the value of the calf and manure and miscellaneous 
returns were deducted from the cost. The amount of feed consumed 
is much more than the average in winter and less in summer. Ap- 
proximate average yearly costs of production with given prices of 
feed and labor can be estimated for the above averages. But the 
costs in summer are much below the average, and in winter are more 
than the average. 

Some estimate of prices to be expected can be made by comparing 
past prices for different months. The comparative prices paid to 
producers for milk in different months when the average for the year 
is 100 per cent have been as follows: 

Comparative prices paid to farmers for milk for 10 years ending Oct. 1, 1916. 



January. 
February 
March . . . 

April 

May 

June 



Chicago 

Milk 
News — 
Percent- 
age of 
yearly 



price. 



New 
York 
" 26-cent 
zone " 
Milk 
Report- 
er—Per- 
centage 
of yearly 
average 
price. 



117.2 
1P.6 
10 '.6 
95.4 
79.4 
71.5 



119.0 
114.7 
106.1 
93.9 
79.1 
70.6 



July 

i August 

September. 
October. . . 
November. 
December . 



Chicago 
Milk 

News — 

Percent- 
age of 
yearly 

average 
price. 



84.8 
95.4 
98.0 
107.2 
115.8 
118.5 



New 

York 
" 26-cent 
zone" 

Milk 
Report- 
er—Per- 
centage 
of yearly 
average 

price. 



81.0 
90.8 
96.9 
110.4 
119.0 
120.2 



An approximate estimate of prices that might be expected can be 
made by using the quantities of feed and labor required and the past 
yearly distribution of price as shown in the accompanying table. 
For instance, if labor is 25 cents an hour, grain $55 a ton, hay $15, 
other dry forage $7, silage and other succulent feeds $6, the average 
yearly net cost of 100 pounds of 3.7 milk for herds as good as those 
reported would be $2.88. If the average price were $2.88, and if the 
prices in different months followed the average course, the New York 



8 PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 

November price to the farmer might be expected to be approximately 
$3.43 (7.37 cents a quart), and the June price $2.03 (4.36 cents a 
quart) . 

If labor is 20 cents, grain $45, hay $10, other dry forage $5, silage 
and other succulent feeds $4, the average yearly cost would be $2.22. 
If the average price were $2.22 and if the prices in different months 
followed the usual course, a November price of approximately $2.64 
might be expected, and a June price of $1.57. 

If labor is worth 30 cents, grain $65 a ton, hay $20, other dry forage 
$10, silage and other succulent feed $8, the yearly average cost would 
be $3.56. If the average price were $3.56, and if the distribution by 
months followed the average course, a November price of approxi- 
mately $4.24 (9.12 cents a quart) and a June price of $2.51 (5.4 cents 
a quart) might be expected. 

On the basis given above the farmer would receive more than the 
assumed wage in summer and less in winter because the difference in 
cost between summer and winter, if wages are uniform, is more than 
the difference in price. 

These prices by months are not the cost of production, nor are any 
of the assumed prices given as applying at the present time, but it is 
believed that this method of estimating will be of some help in 
determining whether prices are fair. 

The average milk production for the farms here included was 6,181 
pounds per cow, or far above the average production. The cost of 
producing milk in an average herd doubtless is higher than the costs 
here given. 

As in any other industry, a price that just covers the average cost 
of production would be below the necessary cost for a considerable 
portion of the industry, and usually will result in decreased produc- 
tion as soon as farmers can readjust their business to better paying 
things. 

Since the feed used for milk production must bring what it is 
worth on the market, the price that the farmer receives for his milk 
is primarily a question of what wages he is to receive. Over half of 
the labor is not the value of hired labor but the value of the farmer's 
time. The farmer's time is on the average worth more than the 
hired man's wages. 

r 
COST OF PRODUCING MILK IN SUMMER AND WINTER. 

Data have been submitted giving the feed used in different months. 
The feed and labor costs of production on 56 farms, keeping 798 cows, 
in Broome County, N. Y., that produced milk distributed by months 
approximately as it is needed for the New York market are given 
below. Kesults from Indiana and Illinois showed similar differences 
between summer and winter. Applying market prices to the feed, 
it will be seen that farmers receive a much smaller wage for their 
time in winter than in summer. 



PRODUCTION DISTRIBUTION, AND FOOD VALUE OF MILK. 
Feed and labor per 100 pounds of 4 per cent milk. 





Pasture 
season. 


Winter 
season. 


Yearly 
average. 




2.79 

6.2 
.3 
.3 

6.6 
22.0 


3.77 

41.7 
100.8 

17.7 
151.9 

10.2 


3.42 


Pounds of— 


28. 1 


Hav 


62.2 




11.1 




96.1 




14.7 







NECESSITY FOR INCREASED MILK PRODUCTION. 

Because of the great shortage of dairy cattle that seems inevitable 
in Europe, our daily industry should be increased so that America 
may help to supply Europe with dairy products, not only now but 
in coming years. Since Europe is not raising enough calves now, it 
will be two or four years before the shortage of dairy products can be 
made up by European production. The best way to stimulate im- 
mediate production and the raising of heifers is to encourage the 
largest possible consumption of milk and other dairy products, and 
encourage the largest possible export of condensed milk, butter, and 
cheese to our allies. We are looking ahead a year at a time for our 
wheat supply; we need to look at least three years ahead for our 
dairv supplies. 

H. DISTRIBUTION COSTS. 

The committee sent out to all the principal milk dealers of the 
country whose names were available questionnaires asking for special 
information as to property account, distribution cost, sales, net 
earnings, average disposal made of the milk purchased, including 
surplus, and such general information as the per cent of bottles lost, 
the means used to increase the return of bottles from the consumer 
and to decrease the breakage of bottles in the plant. About 45 
companies have replied in a form sufficiently definite for use by the 
committee. The information is all for the six-months' period ending 
June 30, 1917. These replies have been summarized by districts, 
as follows: 

A. New York City — Metropolitan district. 

B. New York State (except New York City — Metropolitan district). 

C. Chicago, Boston, Baltimore, and Washington. 

D. Pittsburgh. 

E. Philadelphia. 

F. New England (except Boston). 

G. Milwaukee. 

H. Indiana, Illinois (except Chicago), Iowa, Kentucky, Tennessee, 
Louisiana, and Missouri. 
I. Ohio. 

31083—18 2 



10 PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 

The diversity in the method of account keeping that exists among 
the distributors caused a variance in interpretation by certain dis- 
tributors of the intent of the questions asked and in the formulation 
of their replies. The committee, therefore, asked the firm of Has- 
kins & Sells to go to the books of those dealers whose answers revealed 
that they had mistaken the intent of questions or showed other defects 
and verify the figures from their books. This was done in order to 
insure uniformity in answer. The distributors whose records were 
thus inspected handle approximately 430,000,000 quarts of milk, 
or 84.3 per cent of the 510,000,000 quarts handled by all the dealers 
reporting. If the distributors' accounts revealed a complete or depart- 
mental separation as to fluid milk and its derivative products, such as 
ice cream (and such separation is decidedly the exception and not 
the rule in current practice), thus facilitating the ready and reliable 
exclusion of such derivative products and figures, such separation 
was adhered to by the accountants in the preparation of their sum- 
mary. In the great majority of cases, however, the accounts did not 
reveal such separation and, as it was impracticable to make any arbi- 
trary exclusion, the results of all milk operations, whether of fluid milk 
or derivative products, were included. Such inclusion is incidentally 
in the interest of comprehensible results and figures, as the net earn- 
ings thus comprise the entire results of operations after taking care 
of the distributors' surplus problem, which is unavoidably interwoven 
with the fluid-milk branch of the business. Further, in cases where a 
separation might have been made as to sales and the cost of the milk 
content of the product, the remaining expenses would not have 
permitted a reliable separation. 

The unit of quantity has been taken as a milk quart, as no con- 
sistent per unit amounts could otherwise be stated. As explained 
in footnotes on the summary for sales costs and net earnings, "milk 
quarts" denotes the ordinary quart for milk taken in whole or fluid 
form, whether sold in that form or sold after conversion into milk 
derivative products; and for milk products they denote the original 
quarts of milk from which such products were manufactured. Thus, 
pounds of butter and quarts of cream were expanded back to the 
original quantity of milk yielding such products, and for the basis for 
such expansion the distributors' own experience data was used 
wherever possible in order to give proper recognition to the butter- 
fat content of the milk product and the butter-fat percentage of the 
fluid milk customarily purchased in each case. 

Inasmuch as the value shown for milk content comprehends the 
total quantity purchased and actually disposed of, including loss and 
shrinkage, the "per quart" amount shown for the item of cost em- 
braces the expense in handling due to such loss and shrinkage. 

The committee, of course, made no appraisals of properties. The 
amounts reported were checked as book values. 



PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 



11 



The following summaries give the results for the questionnaires 
in each of the districts concerned. The names of the companies re- 
porting for each district are also given: 

DISTRICT A— NEW YORK CITY— METROPOLITAN DISTRICT. 

[Reports from H. S. Chardavoyne (Inc.), Brooklyn; Cooke Milk & Cream Co., Brooklyn; Keystone Dairy 
Co., Hoboken, N. J.; Sheffield Farms Co. (Inc.); Mutual McDermott Dairy Corporation; Borden's 
Farm Products Co. (Inc.); High Ground Dairy Co.; Locust Farms Co., for six months ended June 30, 
1917.] 

ASSETS i (JUNK 30, 1917). 

Operated property, city: 

Land $2, 085, 891. 92 

Buildings 4, 357, 817. 59 

Machinery 1, 313, 119. 09 

Teams, auto trucks, etc 2, 352, 573. 05 

Other— cans, bottles, boxes, etc 872, 277. 11 

Total $10, 981, 678. 76 

Operated property, country: 

Land 371, 065. 64 

Buildings 3, 328, 243. 78 

Machinery 1, 849, 338. 86 

Teams, autotrucks, etc 342,325.35 

Other , 167,161.63 

Total 6, 058, 135. 26 

Investments : 

Liquid assets 9, 664, 346. 01 

Intangible assets, good will, etc 1, 061, 910. 00 

Other assets 653, 884. 55 

Total 11, 380, 140. 56 

Total assets 28, 419, 954. 58 

SALES, COSTS, AND NET EARNINGS.! 



Milk quarts 2 purchased 233 066, 168 

Milk quarts 2 sold 226, 638, 9G6 

Net sales 



Cost and expenses: 

Milk content 

Coimtrv expenses (handling, depreciation, etc.; ice, collecting station only; 
freight) 

Factory expenses (cartage, railroad station to plant: bottling and pasteur- 
isation; ice, fuel, and supplies; manufacturing of mili products; depre- 
ciation) 

Delivery expenses (horse and wagon maintenance: auto-truck mainte- 
nance, drivers, stable, etc.: depreciation, container loss, miscellaneous). 

Selling, administration, and general evpenses (advertising and soliciting, 
insurance and taxes, salaries of executives, other salaries, office expenses, 
etc.) 



Total. 



$21,862,543.34 



11,481,265.34 
1,826,427.26 

2,320,772.94 
4,675.612.07 

1,059,743.01 



Per milk 
quart sold. 



$0.09646 



Total cost and expenses 21 363 820 62 



Net earnings 

Ratio to net sales 2.28 per cent. 



3, 722. 72 



. 01024 
. 02063 

.00467 



.09426 



.00220 



1 All dealers reporting. 

3 Milk quarts embrace quarts of milk purchased as milk, whether disposed of as milk or converted 
into mil'-" products; and for milk products (as cream, butter, cheese, etc.) purchased by the dealer in 
manufactured form, milk quarts represent the original quantity of milk from which such products were 
manufactured. 



12 PRODUCTION, DISTRIBUTION, AND POOD VALUE OF MILK. 

DEPRECIATION.! 



Amount of 

depreciation 

included in 

expenses. 



Annual rate, 

percentage 

of book 

values of 

pertinent 

assets. 



City: 

Bu'ldinirs 

Plant equipment (refrigerator, milk machinery, power) 

Delivery equipment (horses, wagons, and autos) 

Containers (bottles, cases , cans) 

Other 

Total city 

Countrv: 

Buildings 

Plant equipment 

Huling equipment . 

Total country 

Total 



$51,695.98 
60,952.26 
141,733.95 
256,111.01 
11,9S8.19 



2.46 
4.48 
12.08 
51.38 
5.16 



522,481.39 



9.74 



59, 594. 22 
69, 562. 70 
12, 879. 11 



3.66 
7.36 
10.18 



142,036.03 



5.26 



664, 517. 42 



8.24 



1 The amounts in this table represent the dealers, four in number, handling 92.51 per cent of the total 
milk quarts accounted for under sales, costs, and net earnings. 

DISPOSAL OF MILK PURCHASED.i 



Milk quarts * purchased — net (representing amount sold and shrinkage in han- 
dling) 



Disposal of milk purchased — net: 

i luid milk sold retail at prices ranging from 7J to 12J cents per quart 

rluid milk sold wholesale at prices ranging from 7 to 8$ cents per quart 

Loss or shrinkage (including unexplained differences in quantities reported). 
Surplus milk - 

Used for butter 

Used for creard 

Used for condensed milk 

Used for cheese 

Used for other products 



Total. 



Milk quarts. 



217,547,282 



1.113,962 

40; 50R, 106 

3,990,957 

2, 369, S92 

42, 126 



4S, 025, 043 



Percent- 
age of 
net pur- 
chased. 



64.48 
10.60 

2.84 



22.08 



1 The foreroine amounts represent the dealers, five in number, handling 93.34 per cent of the total milk 
quarts accounted for under sales, costs, and net earnings. 

2 See definition in footnote under " Sales," etc. 

ROUTE STATISTICS. 

Number of retail routes 1 ' 3, 302 

Average number of quart points per route 252 

Number of wholesale routes 2 24 

Average number of quart points per route 1, 307 

i These amounts represent dealers handling 96 per cent of the total milk quarts accounted for under 
sales, costs, and net earnings. 

* These amounts represent dealers handling 61.19 per cent of the total milk quarts accounted for under 
sales, costs, and net earnings. 



PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 13 

DISTRICT B— NEW YORK STATE (EXCEPT NEW YORK CITY— METROPOLITAN DISTRICT.) 

[Reports from Queen City Dairy Co., Buffalo; Geneva Milk Co., Geneva, N. Y.; White Springs Farm 
Dairy Co., Geneva, N. Y.; Little Falls Dairy Co. (Inc.), Little Falls, N. Y.; Cloverland Dairy Co. 
(Inc.), Syracuse, N. Y., for six months ended June 30, 1917.] 



ASSETS i (JUNE 30, 1917). 

Operated property, city: 

Land $56, 665. 40 

Buildings 116,767.44 

Machinery 77, 399. 07 

Teams, auto trucks, etc 56, 404. 09 

Other — cans, bottles, boxes, etc 34, 847. 99 



Total $342, 083. 

Operated property, country: 

Land 9, 300. 00 

Buildings 62,634.86 

Machinery 56, 634. 10 

Other 548.50 



Total 129, 117. 46 

Investments: 

Liquid assets 216, 450. 13 

Intangible assets, good will, etc 73, 140. 70 

Other assets 68, 131. 68 



Total 357, 722. 51 



Total assets 828, 923. 96 

SALES, COSTS, AND NET EARNINGS.* 



Milk quarts « purchased 10, 979, 796 

Milk quarts 2 sold 10,650,347 

Net sales 



Cost and expenses: 

Milk content 

Country expenses (handling, depreciation, etc.; ice, collecting station only; 
freight) 

Factory expenses (cartage, railroad station to plant; bottling and pasteuri- 
zation; ice, fuel, and supplies; manufacturing of milk products; depreci- 
ation) 

Delivery expenses (hcrse and wagon maintenance, auto-truck maintenance, 
drivers, stable, etc.; depreaati n, container loss, miscellaneous) 

Selling, administration, and general expenses (advertising and soliciting; 
insurance and taxes; salaries of executives; other salaries, office expenses, 
etc. ) 



Total cost and expenses . 



Net earnings 

Ratio to net sales, 4.30 per cent. 



Total. 



£875, 764. 23 



574,379.32 
30,048.37 

74, 207. 07 
107, 143. 49 

52,314.52 



838, 092. 77 



37, 671. 46 



Per milk 
quart 

sold. 



$0. 08222 



.05393 
.00282 

. 00697 
.01006 

. 00491 



. 07869 



.00353 



1 All dealers reporting. 

2 Milk quarts embraje quarts of milk purchased as milk, whether disposed of as milk or converted into 
milk products; and for miik products (as cream, butter, cheese, etc.) purchased by the dealer in manufac- 
tured form, milk quarts represent the original quantity of milk from which such products were manufac- 
tured. 



14 PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 

DEPRECIATION.! 



City and country: 

Bui dings 

Plant equipment (refrigerator, milk machinery, and power) 
Delivery equipment (horses, wagrns, and autos). . 

Containers (bottles, cases, and cans ) 

Other 

Total 





Amount of 

depreciation 

included in 

expenses. 


Annual rate, 

percentage 

of book 

values of 

pertinent 

assets. 




$2, 293. 47 

7, 351. 28 

1,766.24 

4, 695. 74 

5.15 


2.70 




15.42 




6.26 




119. 06 




10.00 








16, 111. 88 


9.76 







1 These amounts represent the dealers, four in number, handling 91.46 per cent of the total milk quarts 
accounted for under sales, costs, and net earnings. 



DISPOSAL OF MILK PURCHASED.i 



Milk quarts 2 purchased— Net (representing amount sold and shrinkage in handling). 

Disposal of milk purchased — Net: 

Fluid milk s Id retail, at prices ranging from 9 to 13 cents per quart 

Fluid milk sild wholesale, at prices ranging frrm 6 to 9 cents per quart 

Loss or shrinkage (including unexplained differences in quantities reported) 

Surplus milk — 

Used for butter 

Used for cream 

Used for cheese 



Milk 
quarts. 



10,042,153 



Total. 



42, 685 

275, 417 

1, 676, 196 



1,994,298 



Percent- 
age of 
net pur- 
chased. 



26.71 
50.15 
3.28 



19.86 



100. 00 



i These items represent four dealers handling 91.46 per cent of the total milk quarts accounted for under 
sales, costs, and net earnings. 
! See definition above. 

ROUTE STATISTICS. 

Number of retail routes ' 82 

Average number of quart points per route 250 

Number of wholesale routes 2 12 

Average number of quart points per route 600 

DISTRICT C— CHICAGO, BOSTON, BALTIMORE, AND WASHINGTON. 

[Reports from the Bowman Dairy Co., Chicago; Alden Brothers Co., Boston; the City Dairy Co., Bal- 
timore; Corbin Thompson-Sharon Dairy, Washington, D. C, for six months ended June 30, 1917.] 

ASSETS 3 (JUNE 30, 1917). 

Operated property — city: 

Land $247,140.29 (3) 

Buildings 593,347.83 (4) 

Machinery 285,702.08 (4) 

Teams, autotrucks, etc 412,213.73 (4) 

Other— cans, bottles, boxes, etc 119, 909. 56 (3) 

Total $1, 658, 313. 49 



1 These items represent dealers handling 70.89 per cent of the total milk quarts accounted for under 
sales, costs, and net earnings. 

2 These items represent dealers handling 62.35 per cent of the total milk quarts accounted for under 
sales, costs, and net earnings. 

8 In this table, (2) after any item indicates that only two companies reported, (3) only three com- 
panies, (4) all four companies reported. 



PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 15 



Operated property — country: 

Land $38,943.07 (2) 

Buildings 354,529.51 (2) 

Machinery 304,120.55 (4) 

Total 

Investments: 

Liquid assets 1,590,272.82 (4) 

Intangible assets, good will, etc 1, 062, 884. 03 (3) 

Other assets 485, 081. 80 (4) 



, 593. 13 



Total 3, 138, 238. 65 



Total assets 5, 494, 145. 27 



SALES, COSTS, AND NET EARNINGS.i 



Milk quarts 2 purchased 77,962,041 

Milk quarts 2 sold 77,056,255 

Net sales 

Cost and expenses: 

Milk content 

Country expenses (handling, depreciation, etc.; ice, collecting station 
only, freight) 

Factory exoenses (cartage, railroad station to plant; bottling and pasteur- 
ization; ice, fuel, and supplies; manufacturing of milk products; deprecia- 
tion) 

Delivery expenses (horse and wagon maintenance; auto truck main- 
tenance: drivers; stable, etc.; depreciation, container loss; miscellaneous). 

Selling, administration, and general expenses (advertising and soliciting; 
insurance and taxes; salaries of executives; other salaries, office expenses, 
etc.) 

Total cost and expenses 

Net earnings 

Ratio to net sales, 7. 17 per cent. 



Total. 



Per milk 

quart 
sold. 



85,896,923.34 ! 


.$0.07651 


i 
3,521,575.65 \ 


.04570 


30,014.93 ' 


.00239 


498,278.32 


.00646 


961,045.36 


. 01247 


403,048.51 | 


.00600 


5,473,962.77 1 


.07103 



422,900.57 | .00548 



'All four companies reported on all items save for country expense, for which item three companies re- 
ported. 

2 Milk quarts embrace quarts of milk purchased as milk, whether disposed of as milk, or converted into 
milk products; and for milk products (as cream, butter, cheese, etc.) purchased by the dealer in manu- 
factured form, milk quarts represent the original quantity of milk from which such products were manu- 
factured. 

DEPRECIATION.! 





Amount of 

depreciation 

included in 

expenses. 


Annual rate, 

percentage 

of, bock 

values of 

pertinent 

assets. 


City: 


2 $6,942.98 
10, ISO. 73 
24,666.80 
3 7,915.64 


5.92 




11.81 




10.64 


Other . .' 


12.74 






Total city 


49,716.15 


9.27 






Countrv: 


* 7, 750. 45 
24.261.02 


5.09 




11. i0 








32,011.47 


9.23 


Total 


81,727.62 


10.12 







i All four dealers reporting sa^e where noted. 

2 But one dealer reported on this item. 

» Represents entire city depreciation charge for one dealer of the three dealers reporting on this item. 

4 But two dealers reported on this item. 



16 PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 

DISPOSAL OF MILK PURCHASED.i 



Milk 
quarts. 



Percent- 
age of 
net pur- 
chased. 



Milk quarts purchased— net (representing amount sold and shrinkage in handling) . 

Disposal of milk purchased— net: 

Fluid milk sold retail at prices ranging from 9f to 11 cents per quart 

Fluid mil k sold retail at prices ranging from 6 to 9 cents per quart 

Fluid milk- sold wholesale at prices ranging from 7J to 10 cents per quart 

Loss or shrinkage (including unexplained differences in quantities reported) . 
Surplus milk — 

U sed for cream 

Used for butter 

Used for other products 



76, 270, 461 



18,814,675 

13, 905. 814 

4,820 



42.19 
3.82 
1.18 

24.66 

18.23 

.04 



Total. 



32,725,309 



100.00 



1 This table is for three companies only. 
ROUTE STATISTICS. 

Number of retail routes 1 946 (3) 

Average number of quart points, per route 1 885 (3) 

Number of wholesale routes 2 4 (1) 

Average number of quart points, per route 2 1, 102 (1) 

DISTRICT D— PITTSBURGH. 

[Reports from The McJunkin-Straight Dairy Co., Edward E. Rieck Co., Harmony Creamery Co., Ohio 
& Pittsburg Milk Co., for six months ended June 30, 1917.] 

ASSETS 8 (JUNE 30, 1917). 

Operated property— city: 

Land $188, 000. 00 

Buildings 452, 355. 35 

Machinery 611, 172. 75 

Teams, auto trucks, etc 302, 551. 03 

Other — cans, bottles, boxes, etc 222, 942. 23 



Total 

Operated property — country: 

Land 

Buildings 

Machinery 

Teams, auto trucks, etc. 



777, 021. 36 



20, 906. 89 

288, 767. 49 

284, 818. 56 

5, 080. 82 



Total 

Investments: 

Liquid assets 1, 123, 584. 16 

Intangible assets, good will, etc 1, 084, 066. 18 

Other assets 43, 526. 33 



599, 573. 76 



Total 2, 251, 176. 67 



Total assets 4, 627, 771. 79 



1 For three dealers. 



s For one dealer. 



* All dealers reporting. 



PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 17 

SALES, COSTS, AND NET EARNINGS.! 



Milk quarts 2 purchased 43,828,743 

Milk quarts s sold 42,818,531 

Net sales 

Cost and expenses: 

Milk content 

Country expenses (handling, depreciation, etc.; ice, collecting station only; 
freight) 

Factory expenses (cartage, railroad station to plant: battling and pasteur- 
ization; ice, fuel, and supplies; manufacturing of milk products; deprocia- 
ti'n) , 

Delivery expenses (horse and wagon maintenance; auto truck mainte- 
nan3e; drivers: stable, etc.; depreciation; container less; miscellaneous).. 

Selling, administration, and general expenses (advertising and soliciting; 
insurance and taxes; salaries of executives; other salaries, office expenses, 
etc.) , '. 

Total cost and expenses .' 

Net earnings 

Ratio to net sales, 2.91 per cent. 



Total. 



$2,720,775.07 



,722,686.89 
330,498.53 

170, 181. 10 
318, 167. 81 

100, 170. 86 



2,641,705.19 



79,069.88 



Per milk 
quart 
sold. 



SO. 06354 



. 01023 
.00772 

. 00397 
. 00743 

. 00234 



.03169 
.00185 



1 All dea'ers reporting. 

s Milk quarts embrace quarts of milk purchased as milk, whether disposed of as milk or converted into 
milk products; and for milk products (as cream, butter, cheese, etc.), purchased by the dealer in manu- 
factured form, milk quarts represent the original quantity of milk from which such products were manu- 
factured. 

DEPRECIATION.! 



City: 

Buildings 

Plant equipment (refrigerator, milk machinery, power) 

De ivery equipment (horses, wagons, and autos) 

Other 

Total city 

Country: 

Buildings 

Plant equipment 

Hauiing equipment 

Total country 

Total 



Amount of 

depreciation 

included in 

expenses. 



$6,936.90 

17,555.95 

16, 133. 68 

95.35 



40, 721. 88 



6, 874. 50 

10,091.25 

109. 00 



17,074.75 



57,796.63 



Annual rate, 

percentage 

of book 

values of 

pertinent 

assets. 



3.2 

7.04 
13.20 
10.00 



6.92 



6.90 

8.74 
4.28 



7.86 
7.16 



i These amounts represent the dealers, three in number, handling 88.88 per cent of the total milk quarts 
accounted for under sales, costs, and net earnings. 

31083—18 3 



18 PKODTJCTION, DISTEIBUTIOlir, AND FOOD VALUE OF MILK. 

DISPOSAL OF MILK PURCHASED.! 



Milk quarts 2 purchased— net (representing amount sold and shrinkage in handling), 

Dispcsal of milk purchased— net: 

Fluid milk scld retail, at prices ranging from 10 to 11 cents per quart 

Fluid milk sold wholesa'e, at prices ranging frcm 74 to 9 cents per quart 

Loss or shrinkage (including unexplained differences in quantities reported).. 
Surplus milk: 

Used frr butter • 

Used for cream 

Used for but termilk 

Used for cheese 

Used for other products 



Total. 



Milk 
quarts. 



43,828,743 



8,660,134 
12, 620, 124 
251,820 
1,036,508 
2,981,684 



25,553,270 



Percent- 
age of 
net pur- 
chased. 



17.26 
22.14 
2.30 



58.30 



100 



All dealers reporting. 



2 See definition above. 



ROUTE STATISTICS. 

Number of retail routes ! .- - 157 

Average number of quart points per route 430 

Number of wholesale routes 2 17 

Average number of quart points per route 925 

DISTRICT E— PHILADELPHIA. 

[Reports from Scott Powell Dairies, Harbison Dairies, Abbott's Aldemey Dairies, Supplee Milk Co., 
Dolflnger Standard Dairies, Edward W. Woolman, Wills Jones Co., for six months ended June 30, 1917.] 

ASSETS JUNE 30, 1917. * • 

Operated property: 

Land. $146, 050. 00 

Buildings 886, 698. 02 

Machinery.... 948, 811. 84 

Teams, auto trucks, etc 395, 348. 14 

Other, cans, bottles, boxes, etc 139, 573. 65 

Total $2, 516, 481. 65 

Operated property — country. 

Land .' 34,642.04 

Buildings '. 947, 915. 68 

Machinery 433, 635. 37 

Teams, auto trucks, etc 69, 917. 60 

Other. 39, 260. 41 



Total 1, 525, 371. 10 

Investments: 

Liquid assets 840, 428. 44 

Intangible assets 4 354, 629. 86 ► 

Other assets 73, 534. 08 



Total. . ! 1, 268, 592. 38 



Total assets 5, 310, 445. 13 



i These items represent dealers handling 74.01 per cent of the total milk quarts accounted for under sales 
costs and net earnings. 

2 These items represent dealers handling 88.88 per cent of the total milk quarts accounted lor under sales 
costs and net earnings. 

3 All dealers reporting. 

* Exclusive of good will as a book value. 



PRODUCTION, DISTRIBUTION, AND FOOD VALUE OP MILK. L9 

SALES, COSTS, AND NET EARNINGS.! 



Milk quarts purchaser? 2 67, 607, 377 

Milk quarts sold 2 65,668,155 

Net sales 

Cost and expenses: 

Milk content 

Country expenses (handling, depreciation, etc.; ice, collecting station only; 
freight) '. .' 

Factory expenses (cartage, railroad station to plant; bottling and pasteur- 
ization; ice, fuel, and supplies; manufacturing of milk products; deprecia- 
tion) .' 

Delivery expenses (horse and wagon maintenance; auto truck maintenance; 
drivers; stable, etc. , depreciation ; container loss; miscellaneous) 

Selling, administration, and general expenses (advertising and soliciting; 
insurance and taxes; salaries of executives: other salaries, office expenses, 
etc.) 

Total cost and expenses 

Net earn in gs 

Ratio to net sales, 2.82 per cent. 



Total. 



$5,423,497.64 


SO. 08258 


2,993,191.89 


.04559 


518,526.22 


.00789 


525, 300. 63 


.00801 


996, 623. 63 


.01517 


236, 906. 35 


.00360 


5, 270, 548. 72 


.08026 



152, 94S. 92 



Per milk 
quart 
sold. 



1 AM dealers reporting. 

2 Milk quarts embrace quarts of milk purchased as milk whether disposed of as milk, or converted into 
milk products; and for milk products (as cream, butter, cheese, etc.) purchased by the dealer in manu- 
factured form, milk quarts represent the original quantity of milk from which such products were manu- 
factured. 

DEPRECIATION.! 



Amount of 

depreciation 

included in 

expenses. 



Annual rate, 

percentage 

of book 

values of 

pertinent 

assets. 



City: 

Buildings 

Plant equipment (refrigerator, milk machinery, and power) 

Delivery equipment (horses, wagons, and autos) 

Containers (bottles, cases, and cans) 

Other 

Total city 

Country: 

Buildings , 

Plant equipment , 

Hauling equipment , , 

Other 

Total country , 

Total 



$17,585.15 

54, 2; 3. 53 

29,572.12 

1,902.64 

2, 504. 90 



4.56 
11.32 
17.64 
7.86 
5.34 



105,898.34 



9.32 



11,409.44 

20,767.37 

3,495.88 

1,496.15 



3.14 

8.14 

10.00 

31.58 



43, 168. 84 



6.30 



149,067.18 



.36 



1 All dealers reporting. 
DISPOSAL OF MILK PURCHASED.! 



Milk quarts 2 purchased, net (representing amount sold and shrinkage in handling) , 

Disposal of milk purchased, net: 

Fluid milk sold retail, special grades at prices ranging above 9 cents 

Fluid milk sold retail, at 9 cents 

Fluid milk sold wholesale, at prices ranging from 6$ to 8 cents per quart 

Loss or shrinkage (including unexplained differences in quantities reported)... 
Surplus milk: 

Used for butter 

Used for cream 

Used for buttermilk 

Used for cheese 

Used for other products • 



Total 

Total per cent . 



Milk, 
quarts. 



58,940,759 



2,288,502 
9,893,686 

394, 654 
40,252 

744,558 



13,361,652 



Percent- 
age of 
net pur- 
chased. 



7.48 

60.56 

5.55 

3.64 



1 Six dealers reporting. 



2 See definition under sales, costs, and net earnings. 



20 PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 

ROUTE STATISTICS. 

Average number of quarts per retail route * 299 

Average number of quarts per wholesale route 2 1,184 

DISTRICT F— NEW ENGLAND (EXCEPT BOSTON). 

[Reports from Deerfoot Farms Dairy, Southboro, Mass.; The Bryant & Chapman Co., Hartford, Conn.; 
Somers Creamery Co., Springleld, Mass., for six months ended June 30, 1917.] 

ASSETS i (JUNE 30, 1917). 

Operated property — City: 

Land $27,983.24 

Buildings 64,279.69 

Machinery 51, 721. 99 

Teams, auto trucks, etc 43, 034. 54 

Other — cans, bottles, boxes, etc 2, 474. 50 

Total $189, 493. 96 

Operated property — Country: 

Land 7, 381. 39 

Buildings 34,674.02 

Machinery 25, 690. 25 

Teams, auto trucks, etc 9,464.89 

Other 575.97 

Total 77,786.52 

Investments: 

Liquid assets 153, 710. 60 

Other assets 37, 605. 21 

Total 191, 315. 81 

Total assets 458, 596. 29 

SALES, COSTS, AND NET EARNINGS.' 



Milk quarts s purchased 6,468,703 

Milk quarts s sold 0,345,334 

Net sales 



Cost aid expenses: 

Milk content 

Country expenses (handling, depreciation, etc.; ice, collecting station only; 
freight) 

Factory expenses (cartage, railroad station tonlaut; bottling and nasteuri/.a- 
tioi; ice, fuel, and smolies; manufacturing of milk products; depreciation 

Dalivarv expenses (horse and wagon maintenance: auto truck maintenance; 
(Livsrs; stable, etc.; d3pre?iation; container loss; miscellaneous) 

Sailing, administration, and general expenses (advertising and soliciting; 
insurance and taxes; salaries of executives; other salaries, office expenses, etc. . 



Total cost and expenses. 



Net earnings 

Ratio to net sales, 1.90 per cent. 



Total. 



S519,835.33 



35?, 853. 97 
35, 127. 63 
41, 523. 14 
51,065.62 
23, 398. 17 



533, 968. 53 



9, 866. 80 



Per milk 
quart 
sold. 



*0. 08192 



. 05855 
. 00553 
. 00654 
.00805 
. 00369 



. 08036 



.0015R 



1 All dealers reporting. 

a This Le.m represents dealers handling 42.05 per cent of the total milk quarts accounted for under sales, 
costs, and net earnings. ' 

a .Milk quarts embrace quarts of milk purchased as milk, whether disposed of as milk, or converted into 
milk products; and for milk products (as cream, butter, cheese, etc.) purchased by the dealer in manu 
factored form, milk quarts represent the original quantity of milk from which such products were manu- 
factured. 



PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 21 

DEPRECIATION.! 



City: 



Buildings 

Plant equipment (refrigerator, milk machinery, and power). 

Delivery equipment (horses, wagons, and autos) 

Other 



Total city. 



Country: 

Plant equipment . 
Hauling 



Tqfal country. 
Total.... 



Amount of 

depreciation 

included in 

expenses. 



Annual rato, 

percentage 

of book 

values of 

pertinent 

assets. 



$440. 38 

1, 553. 97 

1,894.27 

37. 12 


2.14 
9.44 
12.24 
3.00 


3,934.74 


7.26 


918.00 
2,080.00 


10.12 
48.10 


2,998.00 


22.38 



0, 932. 74 



10.24 



1 These amounts represent dealers handling 76.69 per cent of the total milk quarts accounted for under 
sales, costs, and net earnings. 

DISPOSAL OF MILK PURCHASED. i 



Milk 
quarts. 



Percentage 

of net 
purchased. 



Milk quarts 2 purchased, net (representing amount sold and shrinkage in han- 
dling) 



4,9f»0,951 



Disposal of milk purchased, net: 

Fluid milk sold retail, at prices ranging from 10 to 11 cents per quart 

Fluid milk sold wholesale, at prices ranging from 6-J to 9[ cents per quart. 

Loss or shrinkage (including unexplained differences in quantities reported) 
Surplus milk: 

Used for butter 

U§ed for cream 



21.17 
50. 68 
2.49 



40, 640 
1,232,425 



1,273,065 



25.66 



Total. 



100.00 



1 These amounts represent dealers handling 76.69 per cent of the total milk quarts accounted for under 
sales, costs, and net earnings. 

2 See definition above. 

ROUTE STATISTICS. 

Number of retail routes 1 37 

Average number of quart points per route 242 

Number of wholesale routes 2 14 

Average number of quart points per route 797 



1 All dealers reporting. 

» This item represents dealers handling 66.22 per cent of the total milk quarts accounted for under sales, 
costs, and net earnings. 



22 PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 

DISTRICT G— MILWAUKEE. 

[Reports from Gridley Dairy Co., Cedarburg Milk Co., Union Dairy Co., for six months ended June 30, 1917.1 
, ASSETS i (JUNE 30, 1917). 

Operated property — city: 

Land $95, 922. 00 

Buildings 359, 682. 22 

Machinery 135, 188. 60 

Teams, auto trucks, etc 114,134.65 

Other — cans, bottles, boxes, etc 58, 912. 44 

Total $763, 839. 91 

Investments: 

Liquid assets. 237, 900. 93 

Intangible assets, good will, etc 6, 638. 29 

Other assets 75, 001.95 

Total 319, 541. 17 

Total assets 1, 083, 381. 08 

SALES, COSTS, AND NET EARNINGS.* 



Total. 



Ter milk 
quart sold. 



Milk quarts 2 purchased 30,327,505 

Milk quarts 2 sold 30,067,999 

Net sales 



$1,791,493.23 



SO. 05957 



Cost and expenses: 

Milk content 

Country expenses (handling, depreciation, etc.; ice, collecting station only; 
freight) 

Factory expenses (cartage, railroad station to plant; bottling and pas- 
teurization; ice, fuel, and supplies; manufacturing of milk products; 
depreciation) 

Delivery expenses (horse and wagon maintenance; auto truck mainte- 
nance; drivers: stable, etc.; depreciation; container loss; miscellaneous). 

Selling, administration, and general expenses (advertising and soliciting; 
insurance and taxes; salaries of executives; other salaries, office expenses, 
etc.) 



1,309,985.81 



.04350 



111,003.24 
217,948.54 

102,343.20 



.00369 
.00725 

.0034 



Total cost and expenses. 



1,741,280.79 



Net earnings 

Ratio to net sales, 2,80 per cent. 



50,212.44 



.00167 



DEPRECIATIONS 



City and country: 

Buillings 

Plant equipment (refrigerator, milk machinery, and power) 

Delivery equipment (horses, wagons, and autos) 

Containers (bottles, cases, and cans) 

Total 



Amount of 

depreciation 

included in 

expenses. 



$3, 806. 91 
4,015.22 
8,094.63 
4,122.97 



20,039.73 



Annual rate, 

percentage 

of book 

values of 

pertinent 

assets. 



2.12 
5.66 
15.58 
63.18 



1 All dealers reporting. 

s Milk quarts embrace quarts of milk purchased as milk, whether disposed of as milk or converted into 
milk products; and for milk products (as cream, butter, cheese, etc.) purchased by the dealer in manu- 
factured form, milk quarts represent the original quantity of milk from which such products were manufac- 
tured. 

8 These amoimts represent dealers handling 98.51 per cent of the total milk quarts accounted for under 
sales, costs, and net earnings. 



PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 
DISPOSAL OF MILK PURCHASED.! 



23 



Milk quarts 2 purchased — net (representing amount sold and shrinkage in hand- 
ling) 



Disposal of milk purchased— net: 

Fluil milk sol i retail, at prices ranging from 8 to 10 cents per quart 

Fluii milk soil wholesaL, at prices ranging from 7 to 8 cents per quart 

Loss or shrinkage (including unexplained differences in quantities reported). 
Surplus milk: 

Used for butter 

Used for cream 

Used for cheese 



Total. 



Milk 
quarts. 



30,327,505 



8, 127, 990 

6, 10S, 236 

65, 704 



14,301,930 



Percent- 
age of 
net pur- 
chased. 



25.79 
26.19 



47.16 



100. 00 



1 All dealers reporting. 



2 See definition above. 



ROUTE STATISTICS.! 

Number of retail routes 162 

Average number of quart points per route 299 

Number of wholesale routes 25 

Average number of quart points per route 991 

DISTRICT H— INDIANA, ILLINOIS (EXCEPT CHICAGO), IOWA, KENTUCKY, TENNESSEE, 
LOUISIANA, AND MISSOURI. 

(Reports from Polk Sanitary Milk Co., Indianapolis, Ind.; Evansville Pure Milk Co., Evansville, Ind.; 
Cloverlands Dairy Co., New Orleans, La.; Nashville Pure Milk Co., Nashville, Tenn.; D. H. Ewing's 
Sons, Louisville, Ky.; Union Dairy Co., Rockford, 111.; Des Moines Milk Co., Des Moines, Iowa; Pevely 
Dairy Co., St. Louis, Mo., for six months ended June 30, 1917.] 

ASSETS 2 (JUNE 30, 1917). 

Operated property — city : 

Land $48, 962. 30 

Buildings 606, 700. 01 

Machinery 221, 554. 65 

Teams, auto trucks, etc 175, 577. 00 

Other — cans, bottles, boxes, etc 53, 337. 17 

Total $1, 106, 131. 13 

Operated property — country: 

Land 5, 040. 00 

Buildings f 23, 914. 59 

Machinery 3, 029. 36 

Teams, auto trucks, etc 3, 631. 38 

Other 25, 231 . 06 



Total 

Investments: 

Liquid assets 352, 994. 16 

Intangible assets, good will, etc 12, 238. 00 

Other assets 29, 680. 10 



Total. 



60, 846. 39 



394,912.26 



Total assets 1, 561, 889. 78 

« These amounts represent dealers handling 81.95 per cent of the total milk quarts accounted for under 
«al?s, costs, and net earnings. 
* All dealers reporting. 



24 



PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 



SALES, COSTS, AND NET EARNINGS.! 



Milk quarts 2 purchased 20, 497, 020 

Milk quarts 2 sold 19,559,527 

Netsa.es .' 



Cost and expenses: 

Milk conten t 

Country expenses (handling, depreciation, etc.; ice, collecting station only; 
freight) 

Fa't^ry expenses ("artage, rai'rrad station to plant; bitting and pas- 
teurization; ice, fuel, and supplies; manufacturing of milk products; 
depre' ia tion) 

De ivery expenses (horse and wagin maintenance; auto truck mainte- 
nance; drivers; stable, et".; depreiati^n; container loss; miscellaneous). 

Selling, administration, and general expenses (advertising and scli iting: in- 
surance and taxes; salaries of executives; other salaries, office expenses, 
etc ,... 



Total cost and expenses . 



Net earnings 

Ratio to net sales, 3.67 per cent. 



Total. 


Per milk 
quart 
sold. 


$1, 704, 447. 60 


$0. 08714 


1,012,690.37 


.05177 


61, 217. 53 


.00313 


143, 149. 10 


. 00732 


242, 075. 95 


.01233 


182,748.76 


. 00934 


1,641,881.71 


.08394 



62,565.89 



. 00320 



1 AH dealers reporting. 

2 Milk quarts embrace quarts of milk purchased as milk, whether disposed of as milk or converted into 
milk products: and for milk products (as cream, butter, cheese, etc.) purchased by the dealer in manufac- 
tured form, milk quarts represent the original quantity of milk from which such products were manu- 
factured. 

DEPRECIATION.! 





Amount of 

depreciation 

included in 

expenses. 


Annual rate, 

percentage 

of book 

values of 

pertinent 

assets. 


City: 


$7, 977. 01 

13,052.86 

16,304.59 

495. 08 


2.18 




1.42 




21.84 


Other.." 


4.46 








37,829.54 


8 84 






Country: 


447.88 
1,348.00 


5.00 




10.68 








1,795.88 


8.32 






Total 


39,625.42 


8 80 







1 Those amounts represent the dealers (5 in number) handling 85.05 per cent of the total milk quarts 
ccounted for under sales, costs, and net earnings. 

DISPOSAL OF MILK PURCHASED.* 



• 


Milk quarts. 


Percent- 
age of 
net pur- 
chased. 


Milk quarts 2 purchased— net (representing amount sold and shrinkage in han- 


17,853,316 








Dispcsal of milk purchased— net: 




81.22 


Fluid milk s'ld whclesa'e, at prices ranging from 7 to 8 cents per quart 




10.85 






3.65 


Surp'us milk — 

Used fir butter 


316,491 
267, 735 
66,630 




Used for cream 




Used for buttermilk 










650,856 


4.28 




100.00 









1 These amounts represent dealers handling 87.1 per cent of the total milk quarts accounted for under 
sales, costs, and net earnings. 

2 See definition above. 



PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 25 

ROUTE STATISTICS. 

Number of retail routes 1 233 

Average number of quart points per route , 208 

Number of wholesale routes 2 12 

Average number of quart points per route 1, 558 

DISTRICT J— OHIO. 

[Reports from Licking Creamery Co., Newark; Akron Pure Milk Co., Akron; The Moorcs & Ross Milk 
Co., Columbus; Allianco Sanitary Milk Co., Alliance, for six months ended June 30, 1917.] 

ASSETS s (JUNE 30, 1917). 

Operated property — city : 

Land $42, 939. 05 

Buildings 145, 557. 57 

Machinery 233, 708. 34 

Teams, auto trucks, etc 74, 537. 03 

Other — cans, bottles, boxes, etc 27, 698. 28 

Total $524, 440. 27 

Operated property — country: 

Buildings. .. .' : 12, 535. 93 

Machinery 17, 741. 84 

Total 30, 277. 77 

Investments : 

Liquid assets 184, 697. 48 

Intangible assets, good will, etc 87, 868. 11 

Other assats 286, 886. 37 

Total 559, 451. 96 

Total assets 1, 114, 170. 00 

SALES, COSTS, AND NET EARNINGS.s 



Milk quarts « purchased _ 19, 548, 29S 

Milk quarts * sold 18,130,061 

Net sales 



Cost and expenses: 

Milk content 

Country expenses (handling, depreciation, etc.; ice, collecting station only; 
freight) : 

Factory expenses (cartage, railroad station to plant; bottling and pasteuri- 
zation; ice, fuel, and supplies; manufacturing of milk products; depre- 
ciation) : 

Delivery expenses (horse and wagon maintenance; auto-track maintenance; 
drivers; stable, etc.; depreciation; container loss: miscellaneous) 

Selling, administration, and general expenses (advertising and soliciting; 
insurance and taxes; salaries of executives; other salaries, office expenses, 
etc.) 



Total cost and expenses. 



Net earnings 

Ratio to net sales, 2.62 per cent. 



Total. 



$867,464.90 



572,065.43 



113,541.60 
127,123.51 

32,031.14 



844,761.68 



Per milk 
quart 
sold. 



$0.04784 



.03155 



,00626 
.00701 

.00177 



.04659 



.00125 



1 These items represent dealers handling 91.35 per cent of the total milk quarts accounted far undor 
sales, costs, and net earnings. 

2 These items represent dealers handling 17.48 per cent of the total milk quarts accounted for under 
sales, costs, and net earnings. 

3 All dealers reporting. 

* Milk quarts embrace quarts of milk purchased as milk, whether disposed of as milk or converted into 
milk products; and for milk products (as cream, butter, cheese, etc.), purchased by the dealer in manu- 
factured form, milk quarts represent the original quantity of milk from which such products were manu- 
factured. 



26 PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 

DEPRECIATION.! 





Amount of 

depreciation 

included in 

expenses. 


Annual rate, 

percentage 

of book 

values of 

pertinent 

assets. 


City and country: 

Buildings 


SI, 443. 94 

8 630.30 

7,585.40 

584.43 


2.10 


Plant equipment (refrigerator, milk machinery, and power) 


7.10 


Delivery equipment (horses, wagons, and autos) 


20.34 


Other 


4.70 






Total 


18,244.07 


7.60 







1 All dealers reporting. 
DISPOSAL OF MILK PURCHASED.i 



• 


Milk, quarts. 


Percent- 
age of 
net pur- 
chased. 


Milk quarts 2 purchased— net (representing amount sold and shrinkage in han- 
dling 


19, 548, 298 








Disposal of milk purchased, net: 

Fluid mil t sold retail, at prices ranging from 8 to 11 cents per quart 




46.99 


Fluid mil c sold wholesale, at prices ranging from 6 \ to 9 cents per quart 




30.89 


Loss or shrinkage (including unexplained differences in quantities reported) . . 




7.25 


Surplus milr: 

Used for butter 


164,676 

2,037,951 

703.823 




Used for cream 














2, 606, 450 


14.87 


Total. 


100. 00 









1 All dealers reporting. 



s See definition above. 



ROUTE STATISTICS.! 

Number of retail routes 52 

Average number of quart points per route i . 361 

Number of wholesale routes , 13 

Average number of quart points per route 971 

CONCLUSIONS AND RECOMMENDATIONS. 

The committee invites attention to the following deductions from 
the above reports and other information examined by the committee. 

1. The per cent of earnings to net sales during this six-months 
period ranges from 1.90 to 7 per cent, with an average of around 
3.33 per cent. The net earnings per quart ranges from 0.125 to 0.548 
cent with an average of 0.256 cent per quart. This is for 45 companies 
with a total quartage for the six months of 510,000,000 quarts. 
Figured on the investments reported the percentage is likewise not 
high. This would still be true even if all intangible assets and good 
will were excluded. We have to remember that this six-months 
period was a period of rising prices. The distributor was hesitating 

i These amounts represent dealers handling 82.53 per cent of the total milk quarts accounted for under 
"Sales, costs, and net earnings." 



PEODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 27 

to charge the consumer more, as higher prices to the consumer means 
diminished consumption. The period from January to June in most 
cases is the period of greater profits, as the period from July to January 
includes the seasonal surplus and the season of greatest scarcity. 

2. An examination as to the number of bottles not returned by 
consumers and the number broken in the plant indicates that some- 
thing more than 50 per cent of the entire loss of bottles is due to the 
negligence on the part of the consumers in returning bottles, while 
less than 50 per cent, roughly 40, is due to breakage in plant. That 
this loss in bottles is significant is shown by the fact that the life of 
a bottle varies from 20 to 30 trips. Bottles cost during this period 
about 4 cents each for quart bottles. Consumers can lower this cost 
by taking greater care to return bottles, and no doubt the distributors 
by better efficiency methods can somewhat lower breakage in the 
plant. As bottles are fragile, they of course will be broken. But 
the average life of a bottle could be greatly increased by conscientious 
efforts on the part of the milk consumers. It may be better for whole- 
sale dealers particularly to charge for bottles not returned. 

3. The cost of distribution to the consumer after pasteurization 
and after the milk has reached the city, according to the reports, 
ranges from 0.701 to 2.063 cents, with an average of 1.116 cents per 
quart. This cost can be lowered to a certain degree by the elimina- 
tion of duplication of routes. Possibly certain other costs might in 
some instances be materially lowered, such as doing away with the 
duplication of property in country districts. The savings effected 
by doing away with the duplication of routes within the city will 
vary from city to city, depending upon the extent to which the 
dealers have already practically a monoply of certain zones within 
the city. The oft-repeated illustration of from 6 to 20 milk wagons 
on the same street is certainly the exception under present conditions 
and not the rule. The number now actually traversing the same 
streets in the same city is much less than is popularly believed. 
This duplication can largely be done away with. The committee 
believes that the future of milk distribution is essentially that of a 
public utility, each vicinity having its zone monopoly. This end 
can be approached through the licensing of distributors. 

4. The committee is unanimously of the opinion that many of the 
laws regulating the sale of milk are superfluous under present con- 
ditions and should be repealed. The committee urges every lo- 
cality to examine anew in the light of present-day facts all its ordi- 
nances and regulations created for the ostensible object of pro- 
tecting the supply of milk with the view of making these regulations 
simple and of reducing all unnecessary costs of milk production and 
distribution. 



28 PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 

5. The committee likewise unanimously recommends that the 
laws of the various States and cities be so amended as to allow 
standardization of milk. By this we mean that the per cent of butter 
fat and of solids other than fat can be standardized. The committee 
earnestly recommends, however, that when standardization is 
authorized it be authorized only with the accompanying require- 
ment that the per cent of butter fat contained in the milk be placed 
upon the stopper of the milk bottle, and that adequate guaranties 
be required to make certain that these standards are lived up to. 
Standardization would, for instance, make it possible to sell 3 per 

. cent milk at a minimum price. 

6. We further believe that the number of grades of milk should be 
reduced to not lower than two or three, exclusive of certified milk 
and skimmed milk. 

III. THE FOOD VALUE OF MILK. 1 

THE ACTUAL FOOD VALUE OF MILK IN FEEDING THE FAMILY. 

1. Milk is the ideal food for infants. 

2. Milk is the best single kind of food for the proper development 
of growing children. 

3. Milk is necessary in any family dietary that is based on the 
welfare of adults. 

4. Milk has these values to the health and development of the 
family because it meets the nutritive needs of the human body in the 
following way : 

A. As a source of energy. — Besides being an important source of 
energy, two of the energy-yielding substances of milk, namely, milk 
sugar and milk fat, have further significance in the dietary as body 
regulatory and growth-producing factors. 

B. For the growth and repair of body tissues, milk furnishes many 
substances, including — 

(a) Milk proteins that have a higher efficiency for tissue restoration 
and growth than almost any of the other common foods such as corn 
or wheat. 

» LITERATURE AND SOURCES OF INFORMATION USED IN THIS REPORT. 

Home Economic Division, U. S. Food Administration. 

Office of Home Economics, U. S. Department of Agriculture. 

McCollum, E. V., "The relation cf the unidentified dietary factors, the fat soluble A and the water soluble 
B of the diet of the growth-promoting properties of milk." Journal Biological Chemistry, 27 : 1, 33-43, 1916. 

Manuscript about to be published jointly by U. S. Department of Agriculture and U. S. Food Adminis" 
tration on Demonstrations in Home Economics. Chapter on "Milt," by Flora Rowe and Lucile Brewer. 

Rose, Flora, Milk a Cheap Food, New York State College of Agriculture, Cornell reading course, Food 
Service, Lesson III. 

Rose, Mary, Feeding the Family. 

Sherman, Henry C, Food Products. 

Skim milk information compiled by Dr. Katharine Blunt, of the University of Chicago, now with the 
Home Economics Office, Department of Agriculture. 

U. S. Department of Agriculture, Farmers' Bulletins 142, 487, 808. 



PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 29 

(6) Such ash constituents as lime and phosphorus; milk is com- 
paratively rich in phosphorus and is the richest source of available 
lime ; that is, of lime that occurs in such form and amounts as may be 
eaten and digested by a child so as to provide for normal growth 
and health. 

C. Milk as one of the body regulating substances. — For certain "fat- 
soluble" and "water-soluble" factors that promote growth, milk or 
eggs or meat fats must be depended upon. Milk contains both of these 
vital factors. 

COMPARATIVE FUEL VALUE OF VARIOUS DAIRY PRODUCTS. 

A. The following tabular data are adapted from "The use of milk 
as food" (Farmers' Bulletin 363, U. S. Department of Agriculture): 

Dairy products — Comparative fuel values in calories per pound. 

Whole milk 310 

Skim milk 165 

Unsweetened condensed milk 780 

Buttermilk 160 

Cream 865 

Butter 3, 410 

Cream cheese 1, 950 

Cottage cheese 510 

Infant foods (milk plus starch) 1,780 

Milk powder 1,715 

B. The case for skim milk: 

(a) Extracts from Dr. Blunt's report: 

Skim milk is a nutritious food, containing practically all of the 
whole milk except the fat. 

In fuel value, a quart of skim milk is about equal to a pint of whole. 

Skim milk has practically all the protein of whole milk, amounting 
in a quart to about the protein contained in 5 eggs, or about 6 ounces 
of meat, or 12 ounces of bread. The protein of skim milk is of the 
highest grade both for growth and maintenance. Certain valuable 
compounds of whole milk are in skim milk, including the especially 
valuable calcium and lactose. In cookery its uses are many and it 
improves both nutritive value and flavor of cooked food. 

(b) The Commission of Milk Standards writes: 

"Whereas the pressure of the cost of living is increasing rapidly 
and vast quantities of nutritious and available food are now going to 
waste, and laws prohibiting the sale of skim milk have no public 
significance; therefore, the commission recommends that the use of 
skim milk as a food be approved, and urges the repeal of laws wherever 
they exist that prohibit the sale of skim milk as a food" 

(c) The Boston experiments show that skim milk can be distributed 
from the wagon in poorer sections of cities, cutting down the over- 
head involved in house-to-house delivery and rendering it practicable 



30 PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 

to place it on the market at lower prices than now obtained over the 
retail counter or f. o. b. kitchen. The Boston summer experiments 
have been criticized because the milk spoiled before being used. 
This will not occur in winter. In summer this can be avoided by- 
buying less at a time and by boiling any left overs for use in milk 
cookery. 

QUOTATIONS FROM AUTHORITIES REGARDING THE FOOD VALUE OF MILE. 

A. From the Home Economics Division of the Food Administra- 
tion: 

"Cows milk as such contains in every quart nearly 34^ ounces out 
of which a little over an ounce of tissue building food (protein) nearly 
1| ounces of fat and over 1^ ounces of sugar, which together 
represents 674 units (calories) . In animal matter it is high in calcium 
solids. A quart of milk contains more than a saturate quart of lime 
water; therefore, its use in the daily diet contains an abundance of 
bone-forming material. 

"Each of those calories has a part of the curd of the milk and in 
that form has a higher food value than the same amount of calories 
found in any of the grains. Milk tends to be either neutral or 
alkaline and therefore is an excellent balance to foods like grains or 
meat, which have an excess of acid in the mineral matter. This is 
especially true of oatmeal and wheat; is less true of the entire grain 
of the corn. 

"The fat of milk is in a form which is easy of digestion. It has a 
pleasing flavor, but much more important than either of these, it 
contains in solution a substance which stimulates the growth of the 
young and stimulates the repair of tissues in the adult. This ' growth 
determinant ' must be present in all food, whether of the young or the 
old. A larger amount must be present in the food of the young." 

"The diet is safest, therefore, when built around milk as a center." — 
Extracts from Milk as a Food. 

B. "Especially in the feeding of children should milk be used 
freely because of its importance in the many advantages of tissue 
building and growth-promoting food. A quart of milk a day for 
each child is a good rule to remember." — H. C. Sherman. 

C. "Whole skim milk should never be substituted for whole milk 
as the principal food in a child's diet. It is as valuable as whole 
milk as a source of protein and mineral materials in the general 
diet."— C. L. Hunt and H. W. Atwater. 

D. "In no other way can the food habits now prevailing, especially 
in cities, be so certainly and economically improved as by a more 
liberal use of milk." — H. C. Sherman. 

E. Milk has the distinction of "differing from all others, except 
possibly eggs, in that it contains fairly good proportions of all the 



PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 31 

ingredients necessary for the building and repair of the body, and for 
supplying it with energy for its activities. Even for adults, milk 
alone can support life for a considerable time, if not indefinitely." — 
U. S. Department of Agriculture, Farmers' Bulletin 363. 

F. "Milk takes first rank among the foods which promote human 
welfare. Any condition which threatens the milk supply should be 
regarded therefore as nothing short of a racial tragedy. "— Flor a Rose 
and Lucile Brewer. 

G. "It is probable that the quality of the milk supply bears a 
closer relation to public health than does that of any other food." — 
H. D. Sherman. 



RELATIVE FOOD VALUE OF MILK AND OTHER FOODS. 

STATEMENTS BASED ON COMPARATIVE STUDIES OF NUTRITIVE VALUES IN VARIOUS 

FOODS. 

A. "No food bears an investigation of its nutritive values better 
than does milk." — Flora Rose. For milk furnishes not merely one 
or two of the primary needs of the body for food, but contributes 
generously to meeting the demands of all three of the body needs. 

B. "In energy-giving power, 1 quart of milk is equivalent to 11 
ounces of sirloin steak, or three-quarters of a pound of round steak, 
or 8| eggs, or 10.7 ounces of fowl." 

"Ever}^ dairy cow in her life time supplies in milk an amount of 
human food equal to that provided by 17 steers." — Bulletin U. S. 
Department of Agriculture. 

C. "A large glass of it yields as much nourishment as a slice of 
roast beef." — U. S. Department of Agriculture, Farmers' Bulletin 363. 

D. "Even such comparisons fail to do justice to the true nutritive 
value of milk, which is largely due to the peculiar nature of its con- 
stituents." — H. C. Sherman. 

TABULAR DATA SHOWING THAT DAIRY PRODUCTS RANK HIGH IN NUTRIENTS AS 
COMPARED WITH CERTAIN OTHER COMMON FOODS. 

Nutrients and energy in 1 pound of the water-free edible portion of several food materials. 
[From Farmers' Bulletin 363, U. S. Department of Agriculture.] 



Food materials. 


Protein. 


Fat. 


Carbohy- 
drates. 


Mineral 
matter. 


Fuel 
value. 


Whole milk 


Pound. 
0.25 
.36 
.33 
.39 
.57 
.26 
.13 
.15 
.10 
.03 


Pound. 
0.31 
.03 
.06 
.52 
.40 
.66 
.01 
.02 
.01 
.03 


Pound. 

0.39 

.65 

.53 

.03 


Pound. 
0.05 
.06 
.08 
.06 
.03 
.08 
.01 
.01 
.04 
.02 


Calories. 
2,475 




1.835 




1 845 




2.990 




2,750 






3,275 




.85 
.82 
.85 
.92 


1,865 




1.865 




1,7£0 




1,885 



32 PRODUCTION, DISTRIBUTION , AND FOOD VALUE OF MILK. 



"The only fair way to estimate the real value of a food is to de- 
termine, first, what the body needs from food; second, how the food 
under question meets those needs, and finally, whether some other 
food may be used to replace it equally well and for less money." — 
Flora Rose. 

GENERALIZATIONS. 

. A. Comparative costs of milk as a product in relation to its raw 
materials : 

(a) " From a given quantity of food materials that man can not 
eat, about three times as much human food can be produced in the 
form of milk as is produced by beef animals." — G. F. Warren. 
B. Comparative costs of milk and other foods : 

(a) "Milk and its products are the cheapest animal foods we have." 

(b) For a given amount of money, milk will furnish more energy 
value than eggs or meat, being a cheaper source of energy than any 
common food except certain cereals. 

For a given amount of money, milk will furnish a higher per cent 
of available building materials than almost any other food. Milk 
is one of the most important sources of factors in food that are essen- 
tial to growth, health, and body regulatory functions. 

Ten cents will buy the following in a few typical foods : 

[Adapted from Milk a Cheap Food, by F. Rose.] 



For 10 cents worth in— 

Milk at 10 cents a quart 

Milk at 8 cents a quart 

Round steak at 26 cents a pound. 

Eggs at 35 cents a dozen 

Eggs at 55 cents a dozen 

White bread at 5 cents a loaf 

Oatmeal at 5 cents a pound 

Corn meal at 4 cents a pound 



Energy. 


Protein. 


Calories. 


Grams. 


672.5 


32.00 


840.1 


40.00 


271.0 


52.26 


234.0 


20.60 


163.0 


13.85 


1,713.5 


61.50 


3,601.5 


151.30 


4,037.0 


104.30 



Lime. 



Grams. 

1.636 

2.045 

.019 

.149 

.096 

.198 

1.179 

.170 



"Taking into consideration the many and important factors 
which increase the value of milk as a food, above that indicated by 
its mere proximate composition and food value, and also the fact 
that it requires no preparation and has no waste, it is believed to 
be true economy to make liberal use of milk in the diet so long as 
the milk does not cost twice as much in proportion to the energy it 
furnished as the average of the food eaten." — Sherman. 

RECOMMENDATIONS. 

Because of the superlative value of milk in the dietary, the com- 
mittee recommends : 

1 . That increased production of milk be encouraged. 

A. As a measure of national safety for the present. 

B. As a measure of national vitality for the future, the future 
being bound up in the welfare of children. 



PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 33 

2. That consumption of milk should be increased because — 

A. A greater consumption of it in cities will result in a better de- 
velopment of the physical condition of the city population, where 
consumption is 112 quarts per capita, as compared with 288 on the 
farm. 

B. Increased consumption will encourage production. 

C. "If the country is to be protected against nutritive disaster, 
every possible step must be taken to educate the people to a reali- 
zation that though they may do without meat they should still 
have milk." — Rose and Brewer. 

D. Skim milk and buttermilk should be made available for city 
consumers. 

E. It is of fundamental importance that the milk supply should 
be not only maintained at its present status but that more milk 
should be made available for children. 



APPENDIX TO REPORT ON PRODUCTION. 

In preparing its report on the cost of production the committee 
voted to omit reports of single farms and bases its report on inves- 
tigations that included a considerable number of farms. It was 
agreed to include in the report on costs of production only those 
farms that produced market milk, omitting the production of milk 
for manufacturing purposes. 

Some data from Michigan on costs of production where milk was 
sold to condenseries were, therefore, omitted, as were data from 
Vermont that included farms selling butter and cream. Data from 
Maine were omitted because they did not include the cost of hauling 
milk. Data from Indiana were omitted because the feed for the 
bull was included with that of cows, and because veal calves were 
credited at their value after having consumed milk, thus making a 
double credit if milk was all credited to cows. The committee voted 
to include the following: 

8 farms Minnesota, submitted by F. W. Peck. 

25 farms Michigan, 1914, submitted by F. T. Riddell. 

25 farms Michigan, 1915, submitted by F. T. Riddell. 

56 farms Broome County, N. Y., submitted by E. G. Misner. 

21 farms various New York counties, submitted by C. V. Noble. 

17 farms Massachusetts, submitted by W. H. Bronson. 

178 farms Connecticut, submitted by G. C. White. 

160 farms New Jersey, submitted by Frank App. 



34 



PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 



Some of the reports included charges for managerial ability or 
business risk. The committee agreed to omit such items. 
There is attached hereto a summary of the reports as used : 

State, Michigan. 

County, Kent, Allegan, Ottawa. 

City for which milk was produced, Grand Rapids. 

Year ending, March 1, 1914. 

Number farms, 25. 

Number cows, 459. 

Pounds of milk per cow, 6,928. 

Pounds of butter fat per cow, 272.54. 

Per cent of milk produced in six months beginning October 1, 47.7. 





Amount 
per cow. 


Value 
per cow. 


Costs: 




2, 400 

1,414 
809 

7,067 
444 
140 
563 

215.6 
68.0 


$26. 68 


Hay 


do 


11.17 




do 


3.11 


Silagi 


do 


14.16 


Oth r succul -nt feed 


do.... 


.68 
8.36 


B adi ling 




1.90 






35.31 




dn 


6.80 




8.72 







.50 




:::::::::: 


4.94 






6.07 






3.00 






7.68 














'39.08 










Returns other than milk: 




3.00 






8 


12.00 


















15.00 






124. 08 









i Value per cow, $82.30. 

I have checked the above and find it to be correct. 

F. T. Riddell, 

East Lansing, Mich. 
Charges for managerial ability and business risk are omitted in the above. 



PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK 



35 



State, Michigan. 

Counties, Kent, Allegan, Ottawa. 

City for which milk was produced, Grand Rapids. 

Year ending, March 1, 1915. 

Number of farms, 25. 

Number of cows, 429. 

Pounds of milk per cow, 7,157. 

Pounds of butter fat per cow, 282.26. 

Per cent of milk produced in six months, beginning October 1, 51.2. 







Amount 
per cow. 


Value 
per cow. 


Costs: 


pounds. . 


2,260 

1,707 

1,177 

7, 723 

479 

140 

744 

21S. 6 

84.0 


$24. 87 




..do.... 


10.00 




do.... 


2.90 




do.... 


15.13 




do.... 

davs . . 


.65 
7.66 




pounds.. 


1.59 




hours. . 


33.89 




do.... 


8.40 




10.33 






.48 






4.75 






10.20 






3.00 






5.03 














138. 99 










Returns other than milk: 




3.00 




tons.. 


8 


12.00 


















15. 00 






123. 99 









i Value of cow, $79.12. 

I have checked the above and find it to be correct. 

F. T. Riddell, 

East Lansing, Mich. 
Charges for managerial ability and business risk are omitted in the above. 



36 PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 



State, Minnesota. 

County, Rice. 

Cities for which milk was produced, Minneapolis and St. Paul. 

Years, 1910, 1911, 1912. 

Number of farms, 8. 

Number of cows, 260. 

Pounds of milk per cow, 5,568. 

Pounds of butterfat per cow, 189. 

Per cent of milk produced in six months, beginning October 1, 49.3. 





Quantity 
per cow. 


Value 
per cow. 


Costs: 


pounds. . 


1,200 
2,050 


$33. 00 




do 

do.... 


15.00 




do.... 


5,500 


13.75 




do.... 








167 


12.00 




4.50 




h ours . . 


144 
40 


34.56 




do.... 


6.00 




5.32 






2.86 






6.00 






7.45 






3.00 






2.32 














145. 76 










Returns: 




5.00 






10 


15.00 














20.00 






125. 76 









i Value of cow, $100. 
I have checked the above and find it to be correct. 



2 At barn. 

F. W. Peck, 
"U" Farm, St. Paul, Minn. 



PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 



37 



State, New York. 

County, Broome. 

City for which milk was produced, New York and Bingham ton. 

Year ending May 1, 1915. 

Number of farms, 56. 

Number of cows, 798. 

Pounds of milk per cow, 5,822. 

Pounds of butter fat per cow, 235. 

Per cent of market milk produced in six months beginning October 1, 51.4. 







Amount 
per cow. 


Value 
per cow. 


Costs: 




1,633 

3,617 

643 

5,600 

840 

158 


$24. 01 


Hay 




18.95 




do 


1 79 




do.... 


14.00 




do.... 


1.36 

4 59 




.75 






198. 8 
29.8 


28 80 




dn 


4.47 




4.91 






.52 






3.33 






2.69 






1.38 






5.77 














117.32 










Returns, except milk: 




2.29 






8.2 


10.22 




.03 














12.54 






104. 78 









1 Excluding salt and condimental feed. 2 Average value per cow, 866.60. 

I have checked the above and find it to be correct. 

E. G. Misner, Ithaca, N. Y. 



38 PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 

State, New York. 

County, various. 

City for which milk was produced, New York and other. 

Year ending spring of 1916. 

Number of farms, 21. 

Number of cows, 368. 

Pounds of milk per cow, 6,469. 

Pounds of butter fat per cow, 246. 

Average test of milk, 3.8. 

Per cent of milk produced in six months beginning October 1, 47.4. 







Amount 
per cow. 


Value 
per cow. 


Costs: 




1,882 
2,309 

SS8 
6,722 

357 


$25. 93 






14 59 




do.... 


2 40 




do.... 


15.12 




do.... 


.94 
4.57 






1.87 






153 

28 


23. 38 




An.... 


4.09 




2.48 






1.51 






4.35 






10.87 






2.23 






3.81 














118. 05 










Returns other than milk: 




9.67 






6.74 


6.97 




.29 














16.93 






101. 12 









i Average value per cow, $87. 
I have checked the above and find it to be correct. 



C. V. Noble, Ithaca, N. Y. 



PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 



39 



State, New Jersey. 

County, Sussex. 

City for which, milk was produced, New York. 

Year ending May 14, 1914. 

Number farms, 160. 

Number cows, 3,866. 

Pounds of milk per cow, 6,491. 

Pounds of butter fat per cow, 1 207. 7. 

Per cent of milk produced in six months beginning October 1, 2 47.6. 





Amount 
per cow. 


Value 
per cow. 


Costs: 




2,577 

3,167 

665 

2,074 


$38. 66 


Hay 


do 


23. 75 




do.... 


2.59 




do.... 


5.19 




do... 








120-150 


8.00 




do 








182. 6 
20.1 


27.03 




do.... 


3.35 




8.19 






.45 






4.10 






6.56 






2.40 






2.30 














132. 57 


Returns other than milk: 




6.53 






10.00 




















16.53 






116.04 









i Per cent butter (at obtained from cow testing association records from this county. 

2 Taken from 30 records selected at random. 

3 Value of cow, $82. 



I have checked the above and find it to be correct. 



Frank App, 
New Brunswick, N. J. 



40 PRODUCTION, DISTRIBUTION, AND FOOD VALUE OF MILK. 

State, Massachusetts. 

County, Middlesex, Franklin, Essex, Worcester, Bristol, Hampshire, Hampden, and 
Norfolk. 
City for which milk was produced, Boston and other Maasachusetts cities. 
Year ending April 30, 1917. 
Number of farms, 17. 
Number of cows, 323. 
Pounds of milk per cow, 5,005. 
Pounds of butter fat per cow, don't know. 
Per cent of milk produced in six months beginning October 1, don't know. 



Costs: 

Grain pounds. 

Hay do. . . 

Other dry forage do. . . 

Silage do. . . 

Green soiling crops do. . . 

Pasture 

Human labor hours . 

Horse labor do. . . 

Bedding 

Use of buildings and water 

Use of equipment 

Depreciation on cow per cent. 

Interest on cow .' do. . . 

Bull service 

Taxes and insurance 

Veterinary services, drugs 

Ice 

Miscellaneous 



Total costs . 



Credits: 

Calf 

Manure tons . 



Total credits. 
Net cost of milk 



Amount 
per cow. 



2, 430 
3,661 
1,196 
4,093 
1,408 



150 
9 



9.05 
6 



$1. 55 
$0.83 
SI. 23 
$1.31 



.85 
8.1 



Value 
per cow. 



$45. 79 

30.44 

5.42 

10.55 

2.78 

5.47 

40.20 

1.86 

1.01 

6.82 

1.67 

6.91 

4.90 

3.40 

1. 



172. 12 



5.39 
16.60 



21.99 
150.13 



The above is a copy of data submitted by Wesley H. Bronson, Amherst, Mass. 
The committee combined salt hay and corn stover under the heading "other dry 
torage. " 

It omitted $14.26 for overhead charges. 



PRODUCTION, DISTRIBUTION, AND FOOD VALUE OP MILK. 41 

State. Connecticut. 
County, all. 

City for which milk was produced, several. 
Year ending, April 30, 1917. 
Number of farms, 178. 
Number of cows, 3,258. 
Pounds of milk per cow, 6,009. 
Pounds of butter fat per cow, 225 (estimated). 

Per cent of milk produced in 6 months beginning October 1, 50.5 per cent actual 
for 47 farms. 





Amount 
per cow. 


Value 
per cow. 


Costs: 




2,100 

3,680 

200 

7,380 

820 

150 


$42. 25 




:::::::::..::.. ..do..:. 


28. 63 




do.... 


.74 




do.... 


19.02 




do.... 


1.85 






7.17 




1.63 






i63 
24.5 


39.94 




do.... 


4.73 




9.08 






1.28 






6.53 






5.12 






2.38 






6.27 














176. 62 


Returns other than milk: 




4.19 






17.40 






.46 














22.05 






154. 57 



I have checked the above and find it to be correct. 

G. C. White, Dairy Husbandman, Storrs, Conn. 



o 



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